Michael Fuchs & Katrin Gasior

Background: Regulatory Impact Assessment (RIA) in Austria

• New federal budget law 2013 (BHG 2013) entered into force on 1 January 2013– systematic impact assessments have to be part of

every consultation material and the legal material provided to the Austrian parliament

– Nine impact dimensions SORESI provides RIA in the field of social affairs

• Contractor and Coordinator: Austrian Federal Ministry for Employment, Social Affairs and Consumer Protection

• Project partners: ISER, Katholieke Universiteit Leuven, Making Choices, BRZ, Statistics Austria

Ex-ante evaluation

tool

Online microsimulation

model

Impact assessment

user friendly

free access

Pilot project

Evidence based policy

Chances of SORESI

Political participation = “currency of citizenship” (Kulinski et.al. 2000: 791) 2 pre-conditions:

1. “must have ready access to factual information that facilitates the evaluation of public policy.”

2. „must use these facts to inform their preferences.“

SORESI =

• Information on current social benefits and tax regulations• Opportunity to try out reform scenarios yourself and to analyse

their effects• Not only for civil servants but the ‚broader‘ public

Limitations of SORESI

• Simplification of reality not all parameters can be simulated in detail (e.g. unemployment benefits)

• Not all social benefit and tax regulations can be displayed on the input mask

• Input-data: Sample size, coverage of different income elements in EU-SILC (e.g. assets and expenditure side)

• “basic” knowledge of Austrian tax and benefit system and statistical results required

⇒ Macro validation good results⇒ …work in progress…

SORESI - work flows

Work flows in the background

Webinterface: Input parameter

1 Euromod.exe2

STATA Do-File3

Mikro data: Base vs. Reform

Webinterface: Output tables

4

2011Income 2010 2010 20132013

UpratePolicy rules EU-SILC2013 results, based on:• 2011 employment

status• incomes uprated to

2013

Example: family allowance reform

• New support model for families decided by the council of ministers in June 2013

Source: press release BMWFJ, 18 June 2013

Family allowance NEW: better, simple, transparent

Child care provision: focus on children <3100 Mio./year for the

federal states

2013 ReformBasic amount (monthly)Age 0-2 105,4 180,0

Age 3-9 112,7 180,0

Age 10-18 130,9 200,0

Age 19-23* 152,7 220,0

Supplements (monthly)2 children in the household 12,8 15,0

3 children in the household 47,8 75,0

Every additional child 50,0 60,0

Multiple child bonus** 20,0 -

Children with disability 138,3 150,0

Tax credit for children 58,4 -

School start bonus (annual) 100,0 -

Family allowance NEW

* if in full-time education** Income test: household income < 55,000 and 3 rd child onwards

2013 ReformBasic amount (monthly)Age 0-2 105,4 180,0

Age 3-9 112,7 180,0

Age 10-18 130,9 200,0

Age 19-23* 152,7 220,0

Supplements (monthly)2 children in the household 12,8 15,0

3 children in the household 47,8 75,0

Every additional child 50,0 60,0

Multiple child bonus** 20,0 -

Children with disability 138,3 150,0

Tax credit for children 58,4 -

School start bonus (annual) 100 -

SORESI – ResultsPoverty risk & Income situation

2013 Reform Diff.

At-risk-of-poverty rateHouseholds with children (age 0-19) 14 14 0 pp.

Single parent households 27 26 -1 pp.

Households with 3+ children 22 21 -1 pp.

All households 12 12 0 pp.Monthly equivalised household net incomeHouseholds with children (age 0-19) 1.817 1.825 +8 €

Single parent households 1.412 1.419 +7 €

Households with 3+ children 1.651 1.661 +10 €

All households 2.021 2.025 +4 €

SORESI – ResultsFiscal assessment

2013 Reform

In Mio. EURFamily allowance (incl. school start bonus) 3,077 4,543

Tax credit for children 1,261 -

Child care allowance (incl. supplement) 1,142 1,142

Single earner tax credit 226 226Single parent tax credit 89 89Total 5,795 6,000Diff. in Mio. EUR +205

Diff. in % +4%

Results of the reform

• Impact on households:• Decrease of poverty risk for families with children

rather low,• slight increase in equ. household net income

• Reform of the family allowance would amount to additional annual costs of € 205 Mio.

• 2 times as high as additional annual investment in child care provision (€ 100 Mio/year)

• Already now clear emphasize on direct cash benefits

Future developments

• Nowcasting (& Forecasting)• Results for model households• annual update (next: beginning 2014)• improving simulation of certain benefits (e.g.

unemployment benefits, minimum income benefits) depending on data availability and quality in EU-SILC collaboration with Statistik Austria

Thanks for your attention!

Test SORESI yourself:

www.bmask.ac.at/soresi

Contact:

fuchs@euro.centre.orggasior@euro.centre.org